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objective as a ground for increased interest. See H. Conf. Rept.
99-841 at II-796 (1986), 1986-3 C.B. (Vol. 4) 796 (Statement of
the Managers).
The validity of the above regulation (and the applicability
of section 6621(c) increased interest) to partnerships
essentially the same as the Garfield and Cardinal partnerships
involved herein was analyzed at length and expressly sustained by
the Court of Appeals for the Ninth Circuit in its recent opinion
in Hill v. Commissioner, 204 F.3d at 1220. Also, imposition of
increased interest under the above regulation in the Krause test
case was sustained by the Court of Appeals for the Tenth Circuit
in its opinion in Hildebrand v. Commissioner, 28 F.3d at 1028.
In a number of cases, the Court of Appeals for the Fifth
Circuit has sustained imposition of increased interest under
section 6621(c). See Durrett v. Commissioner, 71 F.3d 515 (5th
Cir. 1996), affg. in part and revg. in part T.C. Memo. 1994-179;
Chamberlain v. Commissioner, 66 F.3d 729 (5th Cir. 1995), affg.
in part and revg. in part T.C. Memo. 1994-228. In Heasley v.
Commissioner, 902 F.2d 380 (5th Cir. 1990), revg. T.C. Memo.
1988-408, the Court of Appeals for the Fifth Circuit, on the
facts of that particular case, reversed our holding that
increased interest under section 6621(c) applied to the
transactions in question. In none of these cases did the Fifth
Circuit suggest the invalidity of the regulations under section
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